Workforce Compliance Standards MOU
Discussions we have had with industry
Discussions we have had with the Fair Work Ombudsman
What we learnt in the Fair Work Commission (streamlining modern awards)
Employment Technology Providers Voluntary Code of Conduct
ETPA is proposing an industry code of conduct.
What we learnt participating in changing modern awards in the Fair Work Commission
Despite the name, making awards easier to use was not on the agenda during these extensive sessions.
What we found was the following:
- Both Unions and Employergroups were not interested in making awards easier to use. Most notable, almost all representatives present were lawyers, or officials with limited understanding when it comes to “end to end” payroll including other legislative compliance (ie, Taxation).
- The Fair Work Commission does not recognise the importance of the EmployTech in Modern Award compliance.
- Moreover, all AWCC Ltd recommendations for changes to modern awards in order to increase the likelihood of compliance (ie, replacing percentages with fixed figures) was rejected not by Unions or Employer Groups, but by the FWC itself stateing “EmployTechs role is to support the FWC and modern awards.”
- All attempts by AWCC Ltd to implement guidance to make awards easier to use were rejected by Employer Groups and Unions.
- Many points of contention with modern awards (or disagreement) in interpretation were unresolved. Meaning, in their current state, many modern awards will operate without any guidance leaving this up to case by case determinations via external courts or regulators.
- A Pizza chain deducting 8% of tips paid to staff on credit and debit cards.
- A Pasta chain of restaurants had a policy requiring staff to pay back 3-5.5% of total table sales in cash to the restaurant each night.
- Another restaurant retained the entire 12.5% service charge automatically.
The full report released by the House of Commons on the history of the Bill can be found below.
In 2015 the U.K Goverment noted several media reports of unfair tipping practices by major restaurant chains and hospitality outlets. Some of which required Hospitality staff to hand back percentages, or in some cases, all of their tips to their employers.
Furthermore, research into electronic payment systems also demonstrated that the automation of service tipping fees was increasing, however these fees were being kept by employers thereby enabling them to double charge a customer under the false pretence of a tip for their staff.
The 09 January 2023 U.K Government report on the bill also stated that 80% of all tipping now happens on card in the U.K.
Examples of unfair tipping practices cited in the report include:
- A Pizza chain deducting 8% of tips paid to staff on credit and debit cards.
- A Pasta chain of restaurants had a policy requiring staff to pay back 3-5.5% of total table sales in cash to the restaurant each night.
- Another restaurant retained the entire 12.5% service charge automatically.
The full report released by the House of Commons on the history of the Bill can be found below.